move towards statehood but hillary rodham clinton warns it will undermind effort for peace talks with israel. >> it is a solution that fulfills the aspirations of the palestinians people is through jerusalem and not new york. >> reporter: it comes after 8 days of bloodshed between israel and hamas. it could certainly boost credibility with hamas but there will be a price for them. u.s. is threatening to cut off a half billion dollars in annual aid. reporting live allison burns, ktvu channel 2 morning news. >>> in vallejo, it could be the work of an arsonist, and police are investigating two suspicious fires and that makes 6 in the last few weeks. it was at a mortgage business and just a half hour later another fire was called in. in the past two weeks, four other fires burned two homes and four businesses and they believe it is a transient to blame. >> i saw him actually sleeping where the fire was started. i am worried to death, i can tell you that. >> nobody has been hurt in any of the fires but vallejo police are having them to report any information about who may be responsible. >>> anot